Pool Corporation (POOL) Stock

Pool Corporation trades at a P/E ratio of 19.69, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 21.79 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 1.60 indicates reasonable value when growth is considered.

With a beta of 1.25, Pool Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 6.92 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Pool Corporation achieves a profit margin of 7.68%, meaning it retains $7.68 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 5.32% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 33.10% and ROA at 10.40%, the company generates strong returns on invested capital.

Pool Corporation's revenue declined by 0.50% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 12.90% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against INDUSTRIAL DISTRIBUTION industry averages for proper context.

Pool Corporation offers a dividend yield of 2.27%, paying $4.95 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Mar 12, 2026.

The dividend sustainability can be assessed through the payout ratio - Pool Corporation pays $4.95 per share in dividends against earnings of $10.85 per share, resulting in a payout ratio of 45.62%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Mar 26, 2026.

Pool Corporation has a market capitalization of $8.0B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 37.25M shares outstanding, the company's ownership is relatively concentrated. As a participant in the INDUSTRIAL DISTRIBUTION industry, it competes with other firms in this sector.

Pool Corporation's book value per share is $32.40, while the current stock price is $206.64, resulting in a price-to-book (P/B) ratio of 6.38. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

14 analysts cover POOL with 36% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $266.09 implies 28.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:05 Buy, 8 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.